Ameribank and Online Banking Case Study

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A decline in the net income of the Ameribank was the major concern of its president. As the head of the Bank, Rob Richman worked overtime, trying to establish a scheme that would improve the performance of the bank. The bank has branches across the United States and it had noted that its customers begun leaving it for its competitors. In most cases, the competitors were foreign Banks and nonbank financial institutions.

It was also noted that other banks, with the convention banking system in the US, were also losing their customer base. The nonbank and foreign bank services were relatively cheaper, easy to use and efficient. The bank had decided to institute measures that would see it counter the challenge.

Ameribank chose to leverage on the services it offered and those that the foreign banks and nonbank financial institutions did not offer. The flagship idea that the bank intends to use is online banking. Rob believes that internet services will be faster and convenient.

The World Wide Web offers an opportunity for customers to do transactions right from their homes and it is considered as one of the most fashionable phenomena in the business world. Ameribank would like to enable its customers to make deposits and withdrawals online (Hillier & Lieberman, 2010)

Richman understands that before rolling out this strategy, there is a need to obtain information on internet financial services. The information must be related to a number of indicators in the banking industry.

To carry out a survey on the internet services and constructs on which to establish the new services, the bank will outsource the services of a professional company that deals with online survey. In this respect, Ameribank has floated bids to get the company that will deliver on their expectations at relatively low charges.

The bank wants to find information of its customers aged between 18 and 25 years. This group is perceived to have a low income and low transaction rates. Customers aged 26 to 40 have high rates of transactions because of high income and other transactions such as loans.

The bank also seeks information of its customers in the age group of 41 to 50 years. The transactions of these customers are average and similar to their income. The group of customers aged 51 and over is more conscious of their social security and retirement benefits. Their online transactions are likely to be low.

The Bank intends to interview 20 percent of the customers aged 18 – 25, 27.5 percent of the customers aged 26 – 40, 15 percent of the customers aged 41-50 and 15 percent of those aged 51 and above. The bank will sample its customers in terms of those who are more knowledgeable in regards to use of the internet and those who are less knowledgeable about internet use.

The survey will consider 15 percent of the customers in regions with a high concentration of internet information, such as the Silicon Valley. The survey will also cover a number of customers with both poor and medium internet usage in various cities.

One of the interested companies for the survey bids is Sophisticated Surveys. The company has already delivered its preliminary charges per group in the interested regions; Silicon Valley, Big cities and Small towns (Hillier & Lieberman, 2010).

Reference

Hillier, S.F., & Lieberman, J. G., (2010). Introduction to Operations Research. New York, NY: McGraw-Hill Higher Education.

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